Stop waiting for a correction to do some buying, says Jim Cramer

My mission is simple. To make you money. I’m here to level the playing field for all investors. There’s always a home market somewhere, and I promise to help you find it. May have money. Starts now. Hey, I’m Kramer. Welcome to May. Have money. Welcome to Kramer guy. Other people make friends. I’m just trying to make you some money. My job is not just to entertain, but to put everything in context. Call me one 807, four, three. CBC. Tweet me at Jim Cramer. Hey, maybe, maybe that was the sell off. Maybe things fell enough. Maybe they fell too much. And that’s what I’m beginning to believe is I surveyed the sometimes massive destruction in stock prices that we’ve experienced in March and April. Of course we have a glorious lack of big picture economic information right now. If you’re getting some weaker labor numbers last week, that could put the Fed on a course to cut interest rates, There’s not much else macro ahead, at least not anytime soon. Oh, we got a couple of Fed officials lurking around waiting to speak in public. There’s some errant consumer confidence numbers on the way, not to mention worries about Disney’s number just tomorrow. But otherwise, when you look at the survey, today’s action Dow gaining 107 points, SP jumping 1.03%, NASDAQ advancing 1.19%, you know we’ve now moved on to an aftermath of a pretty vicious sell off and any decline from here might be an occasion to bye, bye, bye. In other words, maybe, maybe the worst is behind us. Let’s take the quintessential stock of the new year to be able to put this in context. OK, let’s take NVIDIA. I want you to think of the NVIDIA arc. The stock which had been a rocket, started fizzling on March 8th. That’s when it peaked when we got a surprisingly strong employment report that made us feel like the Fed was foolish to take more rate hikes off the table. Remember that. So what’s happened since then? Well, OK, so NVIDIA introduced an incredibly revolutionary chip. It’s called Blackwell. Far faster, not faster, but far faster than anything that’s currently available. Put that perspective, let’s say I, I wanted to use an example just so you can always it comes to life this way. Let’s say you want to teach a robot to pitch in Major League Baseball. Well, right now you they would just get, they would be hit, they’d be pulled in the first inning. But you show Blackwell, OK, the computer videos of all the great pictures you load them in. Then you show Blackwell videos of all the great hitters. Load those in, or at least the hitters of a really good team. Blackwell can then tell the robot exactly what to pitch and where to place it. And the robot will get this. It will pitch a perfect game. Every single time. Every time. And that’s just one example of how revolutionary this chip is. Blackwell can help figure out how all the major illnesses operated a micro level because it can rapidly map and understand proteins that used to be an insanely time consuming course. Now look, this does not mean a cure. Far from it. OK, I don’t even want to. I don’t want to. Suppose that. But it means that research can be accelerated, and that is often what really needs to happen. The Blackwell supercomputer offers an Omniverse product. That product can work with Apple Vision Pro to build something verse virtually so that you can perfect the design and then help execute it in reality with a fraction of the waste. And waste really matters these days. We saw it made me feel when I was in that Nissan Roadster, when I was actually just sitting in a chair. People are laughing at me about the power of the Vision Pro and I get that. But you know what? I’m going to laugh. Not on like Carrie in that great gym scene. Now this technology can speed up any of the hyperscalers programs. Amazon, Alphabet, Meta, Microsoft all seem to want Blackwell chips, even if they are developing their own less powerful in house semiconductors, which we hear about constantly. But they don’t compete with what NVIDIA is doing. Black will and be the answer for so many problems that we don’t even know exist yet because we aren’t yet capable of imagining the solutions. Our brains really just aren’t big enough. I know that sounds strange, but it’s true. Things that used to take weeks to calculate can now be done in a day or an hour. So you what? You’ll do something that you might not have done otherwise. Now you might think this would have been huge for NVIDIA, the stock, but the market had turned against growth stocks because we were worried about the Fed and that’s why the stock ignored the GTC conference and it fell more than 22% peak the through. I mean, come on, that’s a massive decline now, perhaps it was justified, maybe it wasn’t though. Either way, you can’t say NVIDIA never corrected, You can’t say it didn’t get smashed in the last few weeks though, it’s come roaring back. But it was hammered. How about Apple? OK, we don’t know if Apple’s bottom or not. I mean stock activity today. We do know there’s an Apple Developers Conference coming up where you might see a lot of exciting things, including things that make the Vision Pro seem like more of a tool for the enterprise, and that spatial computing is for real, at least when it’s hooked up to Nvidia’s Omniverse, which is the link to the NVIDIA supercomputer. Apple’s quarter was better than feared. Its guidance was better than expected. Service revenue was terrific. Most important, when I asked Tim Cook whether the next iPhone would have all the cool AI capabilities that Samsung had, he laughed and assured me not to worry about that now. That makes you think that the next iPhone iteration will be a must buy, which means that you should be buying Apple stock right now. These positives are all ahead of you as a shareholders through the Warren Buffett sold some Apple, suggesting it might be pot, but maybe it was because the possibilities of capital gains tax rates going higher. But he’s still Foursquare behind the company and the iPhone for all that. What’s happened? Apple stock that it fell 17.8% from peak to through, but I can video it’s bounced back nicely last week. What else? OK, I don’t know what to do with ARM Holdings. This is a terrific semiconductor architecture company taking market share, working ARM in ARM with NVIDIA and CPU’s that can cooperate with their ultra high speed graphics chips. That’s a GPU. GPU’s are buffeted by CPU’s. From everything I hear, ARM CPU business is incredibly strong. Yet during this hell up, this stock fell 48% from peak to 12. It also bottom a few weeks ago, but it’s Stillwell off its highs, it reports Wednesday. It’s true that AMD didn’t raise its forecast enough for next year’s ultra fast graphics chips that that they think can rival Nvidia’s. They took numbers up to about 4 billion from 3.5 billion that they were projecting in January. But Wall Street already wanted at least 5 billion or even more. I think analysts got ahead of themselves. The stock during this period pulled back 38% from peak to 12. Now it’s starting to rebound. It’s only at 14 bucks from its lows. That could be an opportunity. Not that long ago, Salesforce CRM gave a triple quarter, nice top and bottom on beat. They also threw in a dividend and buying back stock enough to keep the float flat. It was an almost universally applauding quarter. And what happened? Well, the stock fell 16% from peak to 12. It’s still just a few bucks away from its lows. Bargain. Microsoft blew away the numbers and gave you a great forecast for Azure. That’s their fast growing cloud business. Amy Hood, the CFO, was as abuse as I have ever heard her. Ever Many thought the stock was headed to the stratosphere and initially it did rally hard. But March and April what happened was the stock fell 10% from peak to through before like finally getting its groove back a week ago. But that’s a big decline from Microsoft. Of course you can say you wait a second. Jim’s cherry picking these two clients in tech. I am literally looking at what were some of the considered the great growth stocks of the year that the market changes. Stripes on early March I got tons of stocks that are enterprise software that just were obliterated. I’m not going into those. In the end, we had a rough time going during the Fed meeting, a rough time going through earning season, and we were anything but unscathed. There were some huge losses racked up, ones that easily could have made people head for the hills and avoid the whole asset class. If you bought NVIDIA at the time of the GTC conference when we were out there a seemingly reasonable moment to pull the trigger, even as we urge you not to, then you know what happened. You got your head handed to you and you only made back after some some of the losses after today’s 4% rebound. If you bought Apple in mid-december at almost 200 and watch it go to 165, well, you probably took a serious loss. Now it’s back to 181. Hey, let’s not forget meta. It fell 10.5% on earnings. Intraday is down even more. It didn’t stop after that. From its peak to its 12th meta. OK, this was a very, very good growth stock. It fell 18.5%. Not many people can handle that kind of loss. Talk about shaking out the weak hands, which is exactly what a correction does and what a hammering. And yet here it comes again. The bottom line, I think the self could finally be over. No one ever wants to say that because then you run the videotape and you look like a joker. I don’t care. I have to deal with the prices that that I’m dealt with. There is there could be some bad news ahead, or at least some planned news though that we can’t expect from the Fed. I don’t know. I mean, maybe, maybe not. Forget the Fed for a second. Here’s what we have. We have benign earnings reports forbid, but the most important take away, stop waiting for correction to give you better buying opportunities. We just had one For heaven’s sake. Let’s go to Anne, Indiana. Anne. Hey, Jim, thanks for taking my call. Thank you, love member of the club. Love the peace over the weekend. You know, whether to battle or cut our losses. Thank you. So anyway, so after Nucor reported, I started a new position. What do you think? You know, New Court had some bad news today about us. Well, there’s a particular they make many different steel, many different kinds of steel. And one other kinds of steel did have a decline in price. And people are saying that that’s very bad for the company. I like New Court very much. You are going to have to deal with a bit of turbulence here as it comes down, but I’m leaning toward buying it, not selling it. And thank you for being a member of the club and for reading that very long piece that took me entire Saturday because my kids were coming over Sunday. I wanted to be with them. It’s got a mat in New York. Thank you for taking my call. Jim, what are your thoughts? What are your thoughts on Sofi post earnings? And can you get the Kramer army, the Reddit army to buy up every single share of Sofi stock that is out there? Well, OK, Sofi reported and it put a good quarter, but nobody cares. And you know, I can defend the stock for so long and I’ve now defended the stock for about almost two years, about a year and a half. And I think it’s OK. But I am not going to sit here and forever say it’s OK. So what? Here’s what I have to say. I wouldn’t buy it. I’d like to see the stock go up. But I, Anthony Yodo is a terrific guy. But I just don’t know what drives the stock higher. I just don’t know. Let’s go to Frank in New York. Frank. Hey, Frank. Hey, Jim. How you doing, you workaholic. Love you. Thank you, Frank. Thank you. I’ve, I’ve been watching this stock since I went to the public recently and I’m wondering if it could some, in some way, shape or form follow a little bit in Chipotle’s footsteps. Cava Group. Yes, I think it can. Cava can and I’ll tell you what, because Kava has that Mediterranean diet going for it that is very good for you and that’s what people want. When they there’s a whole cohort of people, that’s all they want. They want to eat out and feel good and be good. And Kava fits that depiction right. I am urging you to stop waiting for Fraction to give you better buying opportunities because we just had one as I just demonstrated and I think we may be closer to the end of the sell off. Doesn’t mean we’re done, but it does mean you buy them. But they come in. Anybody tonight? This ain’t Texas, it’s the nearest Stock Exchange, but I’m still weighing my cards down on Texas Roadhouse to see if the restaurant chain could be advertising this tape. Then is it finally safe to dip your toe back into the market? I’m going off the charts to see if what I just said at the top of the show could be for real and the pandemic has changed the freight and logistics business. I’m checking them with Arc Fest to see whether that is the time to buy a tattered stock. So stay with Kramer. Don’t miss a second of Mad Money Follow at Jim Cramer on X. Have a question? Tweet Kramer hashtag Mad Mentions Send Jim an e-mail to [email protected] or give us a call at one 807 Four Three. CNBC. Miss something? Head to madmoney.cnbc.com.